An FHA loan is a mortgage for those with a 580+ credit score, that’s insured by the Federal Housing Administration (FHA). They are popular especially among first-time home buyers because they allow down payments of 3.5%. The low down payment and lenient qualifying standards make this a great loan program for a lot of people.
Benefits of FHA loans:
- Low Down-Payment on an FHA loan
- 580+ Requirements on an FHA loan
- Ability to Assume a Mortgage from a seller on an FHA loan